Taxes and Finance: New rules for small businesses, take note

Beginning in 2024, many small businesses in the United States will be required to report information about their owners to the Financial Crimes Enforcement Network (FinCEN). These reporting requirements are part of an effort to fight financial crimes such as corruption, money laundering, tax evasion, and drug trafficking. However, there are a number of businesses exempt from these reporting requirements, including sole proprietors, accounting firms, insurance companies, banks, certain large businesses, and tax-exempt entities. The reporting deadline varies depending on when a business was created or registered, with existing companies created before January 1, 2024, required to file their report by January 1, 2025. All small businesses must also immediately report any changes in their ownership information, and failure to comply with these reporting requirements can result in fines of up to $5,000 or more for each violation. To learn more about the reporting process and to register, visit the FinCEN website.